What is Economics? Definitions and Explain of Economics, Some Basic Economics concept. Types of Economics - Microeconomics and Macroeconomics. Why is it so important with the understanding of the economy? Why do we need to study economics if we're not planning for a business career?
The answer to all these questions is in this article, you are welcome to our blog #THEECO.INFO
This clarification provides a good opportunity to define some other terms that are important in economics.
Goods are things that people like and want to use, we say that people consume them. There are Bad things that people must accept to pay.
For example, a burger can be a good one if you like burger. Garbage is probably a bad thing for most people that you convince me to take your trash, I have to pay you.
Resources are used to make things labor and equipment such as oil wood and so on are all resources.
Scarcity (Shortage) means that goods are limited. We can never have everything as much as possible because resources are scarce. Every time resources are used to make one thing it means that they are not creating anything else. We should make choices to put one more thing for business in another way.
Opportunity cost is another concept we've taken to account it represents the profit or value of something that must be given up to acquire or achieve something else for example if you decided to spend a Friday night going in the movies you lose the opportunity to start on an essay that is due Monday.
Microeconomics concerns itself with economic decision-making on a small scale. it focuses on consumers, workers, businesses usually called firms and how they interact through markets. Microeconomics might even consider the interaction of a couple different markets at the same time when one gets much bigger than that however one starts to get into macroeconomics.
Macroeconomics concerns itself with economic aggregates which are measures of how the economy overall is doing examples of economic aggregates are GDP which tries to measure the value of stuff produced. Inflation which is a measure of how prices go up over time. Unemployment which is well it's how many people are not employed.
Economics is also very important to businesses. A good business manager would need to know how to do production analysis so that products can be produced at the lowest possible cost with the highest efficiency. Maximize profits businesses need to analyses the demand of consumers and make appropriate adjustments to the prices of products as an example prices were high for fidget spinners when they were trendy but had dropped when the demand slowly decreased.
Now let's answer a question most students ask “Why do we need to study economics if we're not planning for a business career?” Well first of all we're all consumers right we buy things all the time in this case we're constantly making money spending decisions by using cost-benefit analysis we weigh the pros against the cons. if one choice provides more utility than the other a decision is made. Let's say we're comparing a Mac-book Air that costs $1,000 to an HP laptop that only costs $200 what a Mac Book be more beneficial considering it would last longer or would you prefer to save money for college.
that is all we have on this topic if you have any question please do write in the comment section below and do not forget to subscribe to our newsletter for more such great post have a great time ahead.
The answer to all these questions is in this article, you are welcome to our blog #THEECO.INFO
Definitions of Economics.
economics is the study of how society manages its scarce resources.
economics is the study of human behavior, with an emphasis on human decision-making.
economics is one of several sciences that tries to explain human behaviour but it differs from other disciplines like psychology and sociology in that it emphasizes rational decision making.
What is Economics.
According to most people economics is all about money and finances but I think economics isn't really about money or stocks well it is partly about money but money in stocks and other financial subjects are only part of economics. Personally, I don't find finance to be a very interesting part of economics. There's much more to this economics is the social science that analyses the production distribution and consumption of goods and services it's all about how we behave how businesses behave and how the government behaves.Explain Economics.
Economics is a study of how people choose to allocate scarce goods and resources to satisfy their unlimited desire.This clarification provides a good opportunity to define some other terms that are important in economics.
Goods are things that people like and want to use, we say that people consume them. There are Bad things that people must accept to pay.
For example, a burger can be a good one if you like burger. Garbage is probably a bad thing for most people that you convince me to take your trash, I have to pay you.
Resources are used to make things labor and equipment such as oil wood and so on are all resources.
Basic Economics concept.
Scarcity and Trade-off
Scarcity exists, and scarcity implies trade-off. Trade-off: The giving up of one thing to get another.Scarcity (Shortage) means that goods are limited. We can never have everything as much as possible because resources are scarce. Every time resources are used to make one thing it means that they are not creating anything else. We should make choices to put one more thing for business in another way.
Opportunity Costs
Opportunity Cost: The value of the best thing we give up to get something.Opportunity cost is another concept we've taken to account it represents the profit or value of something that must be given up to acquire or achieve something else for example if you decided to spend a Friday night going in the movies you lose the opportunity to start on an essay that is due Monday.
Sunk Costs
Sunk cost is any past costs that has already been paid and cannot be recovered. This can sometimes be a dangerous trap since it often leads us into irrational thinking let me give you guys an example you go to a fancy restaurant and become Bowl after eating most of your food instead of stopping yourself from eating more you might think I might as well finish this so I don't waste my money well unfortunately your money has already spent and eating more just going to make you feel uncomfortable this is exactly why some cost should not be a factor that affects our decisions.
Types of Economics.
There are two main branches of economics microeconomics and macroeconomics. Microeconomics focuses on the decisions of an individual or a business itself. macroeconomics analysis the economy of an entire nation.Microeconomics.
Definition of Microeconomics – The study of the behaviour of individuals, firms, or a few markets.Microeconomics concerns itself with economic decision-making on a small scale. it focuses on consumers, workers, businesses usually called firms and how they interact through markets. Microeconomics might even consider the interaction of a couple different markets at the same time when one gets much bigger than that however one starts to get into macroeconomics.
Macroeconomics.
Definition of Macroeconomics – The study of the behaviour of economics aggregates such as GDP, Inflation and Unemployment.Macroeconomics concerns itself with economic aggregates which are measures of how the economy overall is doing examples of economic aggregates are GDP which tries to measure the value of stuff produced. Inflation which is a measure of how prices go up over time. Unemployment which is well it's how many people are not employed.
Importance of Economics.
Why is it so important with the understanding of the economy? The government can make the right decisions to ensure a stable economic growth with the low inflation and the highest possible level of employment. for example, FISCAL policy the government can make adjustments to their spending and Taxation in order to stabilize the economy. When a recession occurs, the government can reduce taxes so that businesses spend more money and hire more workers. That way our GDP increases and our economy is back on track.Economics is also very important to businesses. A good business manager would need to know how to do production analysis so that products can be produced at the lowest possible cost with the highest efficiency. Maximize profits businesses need to analyses the demand of consumers and make appropriate adjustments to the prices of products as an example prices were high for fidget spinners when they were trendy but had dropped when the demand slowly decreased.
Now let's answer a question most students ask “Why do we need to study economics if we're not planning for a business career?” Well first of all we're all consumers right we buy things all the time in this case we're constantly making money spending decisions by using cost-benefit analysis we weigh the pros against the cons. if one choice provides more utility than the other a decision is made. Let's say we're comparing a Mac-book Air that costs $1,000 to an HP laptop that only costs $200 what a Mac Book be more beneficial considering it would last longer or would you prefer to save money for college.
that is all we have on this topic if you have any question please do write in the comment section below and do not forget to subscribe to our newsletter for more such great post have a great time ahead.
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